There currently are three principle ways that electrical energy is commercially generated: by burning fossil fuels, by using nuclear energy and by renewable means. Electrical energy is produced by one or more of these ways and then supplied to the market as needed for consumption. However, electrical energy demand is not consistent—there are many fluctuations resulting in peak periods where demand is increased and off-peak periods where demand for electrical energy is less. It is often a challenge for utilities to meet the increased demand during peak periods, but on the other hand there may be an over-abundance of electrical energy generated during off-peak periods.
In many instances, power generating units, such as coal-fired plants or nuclear plants, are run continuously because the cost of shutting down and starting up the units are prohibitively high. Thus, not all of the electrical energy generated by these units may be consumed during off-peak periods. In addition, in wholesale energy markets, electrical energy is purchased and sold at market prices, which fluctuates depending on consumer demand. Thus, during off-peak periods, electrical energy may have to be sold at a market price lower than the cost to produce the electrical energy. The market price of electrical energy during off-peak periods is generally less than the price of electrical energy during peak periods.
It would be advantageous, therefore, to provide a method and system that allows electrical energy-generating utilities to store excess electrical energy that is generated during off-peak periods, and then sell that stored electrical energy during peak periods. There have been a variety of methods and systems suggested for storing electrical energy (discussed below), but there still remains a need for a system and method for storing electrical energy during off-peak periods and distributing the stored electrical energy during peak periods.
Examples of methods and systems suggested in the prior art include:                a. U.S. Patent Application Publication No. 2006/0276938 μl published on Dec. 7, 2006 describes a method and system for optimizing the control of energy supply and demand. An energy control unit is provided to control energy consumption by devices on the basis of supply and demand. Battery storage and alternative energy sources (e.g., photovoltaic cells) are activated to sell energy to the power grid during peak periods.        b. U.S. Patent Application Publication No. 2002/0041126 A1, published on Apr. 11, 2002 describes a power load-levelling system and packet electrical storage utilizing a plurality of capacitors. The capacitors are charged with electrical energy produced by the utility during off-peak periods, and discharged during peak periods.        c. U.S. Patent Application Publication No. 2002/0000306 A1, published on Jan. 3, 2002, describes a method and device for storing energy utilizing phase change material. The device includes at least one phase change material being capable of undergoing a phase change at a functional temperature, and a heat transfer fluid.        d. U.S. Pat. No. 4,532,769, issued on Aug. 6, 1985 describes an energy storing flywheel assembly.        e. U.S. Pat. No. 4,894,764, issued on Jan. 16, 1990 describes an electric load levelling system that includes a plurality of individual modules for storing and supplying AC electrical energy. Each module includes a plurality of individual batteries for storing DC electrical energy. A power conversion mechanism is also provided for converting input AC power for storage in DC battery cells, and output DC power from the batteries to AC for supply to an input/output line. The system stores electrical energy during off-peak periods, and outputs such stored energy during peak periods.        f. U.S. Pat. No. 5,368,957, issued on Nov. 29, 1994 describes an energy storage device with novel anode and cathode materials. The cathode is a solid solution or composite material of two or more compounds of a layered crystalline material, and the anode includes electro-active species selected from the group comprising lithium, sodium and potassium and alloys with other materials.        g. U.S. Pat. No. 5,589,727, issued on Dec. 31, 1996 describes an energy storage device in which a vacuum tube and a magnetic field are used to store electrons circulating within the tube along spiral paths.        h. U.S. Pat. No. 5,614,777, issued on Mar. 25, 1997 describes an energy storing device comprising a high speed rotating flywheel and an integral motor/generator unit.        i. U.S. Pat. No. 5,655,617, issued on Aug. 12, 1997 describes a means for storing kinetic energy using an elastomeric member and a plurality of offset pulleys.        j. U.S. Pat. No. 5,931,249, issued on Aug. 3, 1999 describes a kinetic energy storage system which utilizes a flywheel with a motor generator to store energy.        k. U.S. Pat. No. 5,936,375, issued on Aug. 10, 1999, describes a method and system for energy storage and recovery for load hoisting equipment. The system includes an inverter controlled first induction motor and a second inverter controlling a second induction motor which drives a flywheel.        l. U.S. Pat. No. 5,939,798, issued on Aug. 17, 1999 describes an energy storage system including a first power conversion device and a second power conversion device for providing energy to loads upon interruption of a main power source.        m. U.S. Pat. No. 6,621,181, issued on Sep. 16, 2003, describes a system whereby a plurality of batteries are connected to the power grid. The batteries can alternately charge during off-peak periods and discharge during peak periods. The system is located within existing rights of way to allow the existing grid to be retrofitted to deliver more power without the need for costly and time consuming negotiations for new rights of way.        
The disclosures of all patents/applications referenced herein are incorporated herein by reference.